Retail Asia 2018 RA September.October 2018 (Online) | Page 9

A USTRALIA Harry Black H Black & Associates Pty Ltd Tower House, 148 High Street, Ashburton, Victoria, 3147 Tel: [phone] Fax: [phone] E-mail: [email protected] [email protected] H ONG K ONG Godfrey Wu MHI Limited 1305 CC Wu Building, 302-308 Hennessy Road, Wanchai, Hong Kong SAR Tel: [phone] Fax: [phone]v8 E-mail: [email protected] C HINA Mary Yao MHI China Ltd D2C brands are using a meticulous combination of social media, data and artificial intelligence (AI) to glean profound insights of their target audience. could hook consumers with product offerings, and if companies want to remain relevant in the minds of today’s hyper-engaged consumers who seek instant gratification, they must step up their game and include the customer in their decision making. D2C brands are exemplary at this, using a meticulous combination of social media, data and artificial intelligence (AI) to glean profound insights of their target audience. From personalised suggestions and curated birthday giveaways to chatbot assistants, companies are borrowing a page from the book of successful D2C brands. Several South-east Asian e-retailers use retargeting via email or electronic direct mailer (EDM) to remind customers about items they had viewed but not purchased, and provide email recommendations containing items similar to previous consumer purchases. A global music streaming service even generates customised playlists, filled with song suggestions based on previous listens. These are a few instances of brands tapping on data and technology to supplement consumer experience. 3 Emergence of novel e-retail formats In the subscription model, the customer is at the heart of the business. After all, they get to choose the product themes and combinations that appeal to them. As the specifics of the items are usually not revealed to the subscriber before they receive the subscription box, the novelty of receiving surprises keeps consumers coming back for more. Subscription boxes are used by niche D2C companies to reach a broader customer net, making use of consumer profiles and data to predict a product assortment. Coupled with efficient logistics and delivery services, D2C companies offering subscription services value-add to their consumers’ lives. In South-east Asia, subscriptions models are offered by D2C brands operating in a variety of industries: beauty, beverages, books, fashion and even food. Despite having a physical presence, a Singapore-based book retailer offers curated subscription boxes and these subscription boxes are often used as a supplementary service for e-commerce and D2C brands to please consumers. With many bricks-and-mortar brands struggling to make their mark on the social space, D2C companies provide a breath of fresh air in terms of acquiring market share, decreasing costs, increasing product innovation, and — more importantly — building the digital brand narrative. While traditional companies will not be losing their footing in the retail industry anytime soon, the current scenario is ripe for fresh, young brands to make an impact. In the digital era, D2C brands seem to reign supreme with their agile business development methods and millennial-friendly marketing tactics — something which legacy companies have a harder time adapting to because of pre- existing mechanisms. Will we see retail giants hold their own in a battle against their younger, digitally-nimble peers? Only time will tell … ra Room 971 Poly Plaza, 14 South Dongzhimen Street, Beijing 100027 Tel: [phone] Fax: [phone] E-mail: [email protected] I NDIA JS Malhotra MRI Global Media Network Annex II & III, 1/16, West Patel Nagar, New Delhi – 110 008 (India) Tel: [phone] Fax: [phone] E-mail: [email protected] I TALY Tiziana Vailati Studio P R B Di Tiziana Vailati Via Vittorio Emanuelle II, 52, I-20052 Monza Mi Tel: [phone] Fax: [phone] E-mail: [email protected] J APAN Mikio Tsuchiya World Media Services Inc 3-35-1-302, Hongodai, Sakae-Ku, Yokohama 247 0008, Japan Tel/Fax: [phone] E-mail: [email protected] S OUTH K OREA Edward YB Jeon Storm Associates Inc 4F, Deok Woo Bldg, 292-7, SungSan-Dong, MaPo-Ku, Seoul Tel: [phone] Fax: [phone] E-mail: [email protected] T AIWAN Virginia Lee Spacemark Media Services 2/F, No. 22-18 Chang An East Road, Section 1 Taipei Tel: [phone] Fax: [phone] E-mail: [email protected] U NITED K INGDOM Patricia Corbett Greg Corbett Associates Ltd 6th Floor, 52 Grosvenor Gardens, London, SW1W 0AU, England Tel: [phone] Fax: [phone] E-mail: [email protected] Website: www.gca-international.co.uk For all other advertising enquiries, contact [email protected] Retail Asia September/October 2018 7